Nvidia shares rose ~3% in after-market trade after forecast revenue again beats estimates, although expenses are higher:
- Sees revenue of $US76.44bn to $US79.56bn, above $US72.78bn estimates.
- Sees adjusted gross margin of 74.5-75.5%, estimate of 74.7%.
- Sees operating expenses of ~$US7.5bn, estimates of $US5.33bn.
Total profit for the year was $US120 billion – three years ago, it was just $4.4 billion, providing ample evidence that it is cashing in on the tech industry’s AI boom more than any other company in the world. Only a handful of companies, including Alphabet, Microsoft and Apple, have made as much money in a year, and it took them way over three years to reach that milestone.
- CEO Jensen Huang banged the drum after the result declaring that the “AI agentic inflection point has arrived”.
All of the numbers for NVDA are amazing, with its most recent quarter revenue up +73% YoY to $US68.1bn. Its dominance is clear; it controls about 90% of the market for the cutting-edge semiconductors that power AI projects. More than anyone else, it will benefit from the plans of Google, Amazon, Microsoft and Meta to spend more than half a trillion dollars this year building data centres.
- Another great result from NVDA and it’s hard to be anything but bullish on their prospects.
MM is now bullish towards NVDA around $US195
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